Expectancy: The Only Metric That Actually Matters
Win rate is meaningless without context. Only expectancy-the mathematical edge per trade-determines long-term profitability.
The Metrics That Mislead
Traders obsess over win rate. "I win 70% of my trades" sounds impressive. But without knowing the size of wins versus losses, the number is meaningless.
A 70% win rate with small wins and large losses produces consistent account decay. A 30% win rate with large wins and small losses builds wealth over time.
What Expectancy Actually Is
Expectancy is the average amount you expect to make (or lose) per trade, accounting for both the probability and magnitude of outcomes.
Formula: (Win Rate × Average Win) – (Loss Rate × Average Loss)
Positive expectancy means long-term growth. Negative expectancy means long-term decay-regardless of short-term luck.
How Glavior Enforces Expectancy Logic
Every analysis is evaluated against expectancy criteria:
- Risk-reward is calculated before entry, not after
- Stop levels are based on market structure, not arbitrary percentages
- Position sizing is fixed, preventing emotional adjustment
- Trade frequency is controlled, avoiding overtrading
This framework is enforced automatically by Glavior.